"Merger of equals" with Karmazin in charge
Monday, February 19, 2007 at 2:04 PM
Tags: 2, XM
While ABC News has supposedly "confirmed" that the merger between XM and Sirius will be announced today (clock is ticking!), their sources also indicate that this would be a "merger of equals."
That seems interesting considering that I can't see either company looking at themselves as an "equal" of the other. Yes, Sirius has the growth momentum and the retail marketshare, but XM has the balance sheet, technology edge and OEM share.
Regardless of the "equals" involved, ABC is also saying that Mel Karmazin would be in charge. And that seems to make sense.
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Comments
Who has the content edge Ryan? A glaring ommission. In media, content is EVERYTHING. That what every reporter and analyst has missed in this. Satellite Radio is a MEDIA business. Content is King.
Posted by: MUSCLE13 | February 19, 2007 2:22 PM
Ok, now to speculate on the name:
SirXM
XMSirius
Xirius (could be cool)
SXM
SiriX
XiriuM
Posted by: Pete ? | February 19, 2007 2:23 PM
There is NOTHING on XM's BALANCE SHEET which makes
it superior to Sirius in anyway , shape , or form.
Posted by: Wayne Ludviksen | February 19, 2007 2:27 PM
C'mon...XM is a better name AM, FM, XM. Most people can't even pronounce Sirius correctly!
Posted by: iband | February 19, 2007 2:27 PM
I predict that by the end of the day there will be a company named XM and a company named Sirius. :)
Posted by: Enough already | February 19, 2007 2:29 PM
A merger of equals just means its not one company buying the other or taking over the other. It doesn't necessarily mean a 50/50 split on valuations - but probably will be close to that.
Posted by: Anonymous Coward | February 19, 2007 2:35 PM
MUSCLE13: That edge actually shows through in the retail domination. The presence of big names in Sirius' repertoire gives the consumer a sense of familiarity which then leads them to buy Sirius over XM at retail. I like to call it a "celebrity" edge though, because saying one has better "content" over the other is a matter of preference...
Posted by: Ryan Saghir ? | February 19, 2007 2:35 PM
Washington Post, Wall Street Journal, and CNNMoney have all picked up on the story as well. The Post article is about the NY Post article, but the WSJ and CNN have specifically stated their own sources. This is getting interesting
Posted by: Anonymous Coward | February 19, 2007 2:38 PM
Washington Post, Wall Street Journal, and CNNMoney have all picked up on the story as well. The Post article is about the NY Post article, but the WSJ and CNN have specifically stated their own sources. This is getting interesting
Posted by: Anonymous Coward | February 19, 2007 2:39 PM
Names:
XMS
Sirius-XM
Sirius Worldwide
XMS Entertainment
or more realistic
Mel's Company
Howard's Cash Crop
Mel: "Whatever Howie says to call it"
Hoo-Hoo Radio
Penero Peanuts
E-Lo will E-Go... away I fear
FreeFm is the only paycheck for the boys
Ok, they last few aren't even names, but you get it.
Posted by: The Squeaky Wheel | February 19, 2007 2:42 PM
This will never get aproval.
Posted by: Anonymous Coward | February 19, 2007 2:43 PM
Even if it is true, it will never get approval.
Posted by: Anonymous Coward | February 19, 2007 2:44 PM
Ryan Content also shows up in cars. If the consumer has a choice in their car of Howard, NFL, Nascar or Oprah and MLB who will they choose?
Answer = Howard, NFL, MLB, Nascar, and Oprah.
End result = merger. Content is King! Its a media business.
Posted by: MUSCLE13 ? | February 19, 2007 2:47 PM
All articles advise they are based on the NY Post story and NO reps from either Satellite service available to comment.
Posted by: Rustiew2 ? | February 19, 2007 2:51 PM
MUSCLE13: is content king? I didn't get it the first 10 times you said it.
Posted by: Disco | February 19, 2007 2:54 PM
Press release here - http://biz.yahoo.com/prnews/070219/nym038.html?.v=75
This is the real deal
Posted by: poopboy ? | February 19, 2007 2:58 PM
YEP DISCO - CONTENT IS KING!!! A couple of years ago Sirius had 600,000 subscribers. Then Howard came along and now Sirius is merging with XM in a merger of EQUALS with Sirius' CEO running the company.
Anymore questions about CONTENT being KING? :)
Posted by: MUSCLE13 ? | February 19, 2007 3:54 PM
Ryan - What do you make of this -
From Reuters
While the companies called the deal a "merger of equals," Sirius would own about 53 percent of the shares of the combined entity and XM would own about 47 percent under terms of the deal and based on the companies' outstanding shares in the latest filings.
Posted by: MUSCLE13 ? | February 19, 2007 8:51 PM
MSN I NIIPET
http://msn.com >MSN
Posted by: Bill | August 6, 2007 12:37 PM